Kommuninvest, the Swedish local government funding agency, has published an updated funding forecast for the 2019 calendar year, for funding longer than 1-year duration. The forecast is unchanged at SEK 100-120 billion (USD 11-13 billion), however with an expectation of an outcome in the higher part of the interval as a result of solid lending growth during the first quarter. To date, Kommuninvest has borrowed the equivalent of SEK 39 billion in long-term funding.
Long-term funding will continue to have a focus on benchmark funding in SEK and USD, including green funding, as well as Uridashi funding in the Japanese market. Continued good demand for Green Loans from Kommuninvest’s members means that Kommuninvest expects to increase green bonds issuance from one to two times a year to up to once a quarter.
Of the SEK 640 billion in Swedish municipal sector external loan debt, more than half is currently financed via Kommuninvest. Kommuninvest continues to grow as a result of a larger market share and the increased welfare investments by Swedish municipalities and county councils/regions.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 073 834, e-mail: email@example.com
Björn Bergstrand, Head of Media Relations, +46 708 869 476, e-mail: firstname.lastname@example.org
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together, we get better loan terms than each one individually. Since its inception in 1986, the Kommuninvest collaboration has helped lower the local government sector’s borrowing costs by many billion kronor. Currently, 289 municipalities and county councils/regions are members of this voluntary cooperation, out of a total of 310 Swedish local governments. With total assets exceeding SEK 400 billion (USD ~43 billion), Kommuninvest is the largest lender to the local government sector. The head office is located in Örebro.